Nikolas Sargeant
Aleksei Andriunin, founder of crypto market maker Gotbit, has been extradited from Portugal to the United States to face serious allegations of market manipulation and wire fraud conspiracy, highlighting continued regulatory scrutiny in the cryptocurrency space despite potential policy shifts under the incoming administration.
Gotbit Leadership Faces Legal Consequences
Andriunin was arrested by Portuguese authorities on October 8 and transferred to U.S. officials on October 25, subsequently appearing before a Boston federal court where he was ordered to remain in custody. The case stems from a federal grand jury indictment on October 31 that also named Gotbit directors Fedor Kedrov and Qawi Jalili.
The charges resulted from an FBI undercover operation using a decoy token called NexFundAI (NEXF) designed to identify market manipulation. Prosecutors allege Gotbit operated as a market maker employing software to conduct wash trades—artificially inflating trading volumes to help clients secure exchange listings and inclusion on platforms like CoinMarketCap.
Court documents claim Kedrov and Jalili openly promoted these deceptive trading practices, even acknowledging in a 2019 interview their methods for concealing such activities on public blockchains. Between 2018 and 2024, Gotbit allegedly generated "tens of millions of dollars" through these illicit activities, with Andriunin reportedly transferring portions to his personal Binance account.
Shifting Landscape for Crypto Enforcement
The legal proceedings occur amid expected changes to cryptocurrency regulation under President Trump's administration. Government legal experts have indicated that while financial fraud cases will continue to be pursued, enforcement priorities are likely to shift toward immigration issues, with potentially fewer resources allocated to cryptocurrency oversight.
Recent weeks have seen the SEC conclude investigations into several major crypto companies without enforcement actions, including Robinhood Markets' crypto trading division, Coinbase Global, and NFT marketplace OpenSea, signaling a potential easing of regulatory pressure on the industry.
Andriunin faces up to 20 years imprisonment for wire fraud charges plus significant fines and asset forfeiture, with an additional potential five-year sentence for market manipulation conspiracy.
